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into a single block grant to states. At the same time, welfare reform transformed the Aid to
Families with Dependent Children (AFDC) program into a block grant and expanded its work
participation requirements, thereby increasing the need for child care among families newly
entering the workforce.
In this new world, states gain increased flexibility for designing and targeting their child
care assistance programs. They also assume additional responsibilities for addressing the need for
child care assistance. Child care administrators in many states reported that they do intend to
make changes in their child care systems but, thus far, their first priority has been to get the
Temporary Assistance for Needy Families (TANF) program up and running. The changes that
I'm reporting on today are early responses by the states. We should expect to see further changes
in state child care programs over time.
States Are Developing Seamless Child Care Assistance Systems
Already a number of states have taken advantage of the opportunities under welfare
reform to improve the administration of child care assistance, making significant progress toward
establishing seamless systems of care. Before welfare reform, federal child care programs were
frequently criticized for the plethora of laws, rules, regulations, and accounting practices across
the different funding streams. These resulted in a complex system that was difficult to administer
and difficult for families to access. All too often, families needed to apply for assistance with
multiple agencies or providers, perhaps completing multiple applications and placing their names
on multiple waiting lists. Many states sought to develop a system of child care that integrated the
different funding streams to minimize these problems. Despite these efforts, state administrators
reported that the complexity of the pre-welfare reform child care system interfered with their
ability to meet the needs of children and their families.
A key first step in developing a seamless child care system is to consolidate the
administration of child care funding streams within a single state agency. Other elements of
seamlessness that often follow include a single point of entry for families seeking assistance;
standardized applications, policies, and procedures across different programs; and a single waiting
list for low-income families needing assistance. These characteristics all serve to make the child
care system more efficient and more accessible for families.
With the increased flexibility in program design under welfare reform, several states that
had not achieved a seamless child care system before welfare reform are making significant strides
in that direction. For example, California, Massachusetts, New Jersey, and Washington have all
moved to consolidate child care assistance within a single state agency. In California, the
administration of child care funding was split between the Department of Education and the
Department of Social Services before welfare reform. Under welfare reform, the state has
combined all child care funds in a single state agency-- the Department of Education. In
Massachusetts, where interactions between multiple child care agencies were often contentious
2
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"ocrText": "into a single block grant to states. At the same time, welfare reform transformed the Aid to\nFamilies with Dependent Children (AFDC) program into a block grant and expanded its work\nparticipation requirements, thereby increasing the need for child care among families newly\nentering the workforce.\nIn this new world, states gain increased flexibility for designing and targeting their child\ncare assistance programs. They also assume additional responsibilities for addressing the need for\nchild care assistance. Child care administrators in many states reported that they do intend to\nmake changes in their child care systems but, thus far, their first priority has been to get the\nTemporary Assistance for Needy Families (TANF) program up and running. The changes that\nI'm reporting on today are early responses by the states. We should expect to see further changes\nin state child care programs over time.\nStates Are Developing Seamless Child Care Assistance Systems\nAlready a number of states have taken advantage of the opportunities under welfare\nreform to improve the administration of child care assistance, making significant progress toward\nestablishing seamless systems of care. Before welfare reform, federal child care programs were\nfrequently criticized for the plethora of laws, rules, regulations, and accounting practices across\nthe different funding streams. These resulted in a complex system that was difficult to administer\nand difficult for families to access. All too often, families needed to apply for assistance with\nmultiple agencies or providers, perhaps completing multiple applications and placing their names\non multiple waiting lists. Many states sought to develop a system of child care that integrated the\ndifferent funding streams to minimize these problems. Despite these efforts, state administrators\nreported that the complexity of the pre-welfare reform child care system interfered with their\nability to meet the needs of children and their families.\nA key first step in developing a seamless child care system is to consolidate the\nadministration of child care funding streams within a single state agency. Other elements of\nseamlessness that often follow include a single point of entry for families seeking assistance;\nstandardized applications, policies, and procedures across different programs; and a single waiting\nlist for low-income families needing assistance. These characteristics all serve to make the child\ncare system more efficient and more accessible for families.\nWith the increased flexibility in program design under welfare reform, several states that\nhad not achieved a seamless child care system before welfare reform are making significant strides\nin that direction. For example, California, Massachusetts, New Jersey, and Washington have all\nmoved to consolidate child care assistance within a single state agency. In California, the\nadministration of child care funding was split between the Department of Education and the\nDepartment of Social Services before welfare reform. Under welfare reform, the state has\ncombined all child care funds in a single state agency-- the Department of Education. In\nMassachusetts, where interactions between multiple child care agencies were often contentious\n2"
}